MCO Breakout
By Johns Wu on Oct 26, 2005
The 6-month chart for MCO looks great and the 5-year chart looks even better. MCO made new highs today and is currently seeing "blue skies" as there is no resistance overhead. It looks like a pretty good swing-trade setup.
Nice clean breakout on good volume. There is good support in MCO at the rising 50 DMA and also at around $52. The RSI looks too overbought to jump in at this price, but it may be a great buy on the pullback.
I’m not sure how strong their earnings call was, but I’m hoping the gap will be filled in the next few days for a safe entry. Again, a good entry would be around $52. Stop-loss right below $52 for a mid-term trade. Stop-loss below 50 DMA for a longterm investment.
2 Responses to “MCO Breakout”
Moody’s downgraded by Keefe Bruyette
Briefing.com (Mon 6:36am)
Leave a Comment
Recent Blog Posts
- What to do about Nucor
- Shortcake ?
- Putting it to the X
- Why it's NOT time to Short Apple and Visa
- Follow Up on WLT
- JPM
- Stashing Cash in Savings Accounts
- Shorting V
- USO Stock Chart (Short Oil?? Call me crazy)
- Throwing out the Chart on AMZN
- Walters Industries
- Mastercard Again
- D R Horton
- EMC
- Broadcom
- Covance
- RIMM
- Cat Stock Chart
- Turning $5,000 into $400,000..UNREAL
- Resistance Broken!
- Best looking chart seen in a while (MELI Stock Chart)
- WSCI - WSI Industries Inc
- Resistance Holding up
- Dont fight the trend. (MOS Stock Chart)
- UTVG - Universal Travel Group
- Havent Done Your Taxes Yet??
- Mastercard
- Costco
- Bottom or no bottom, That is the question.
- Is the Apple Still Rotten?
Subscribe
   |
 |
I have worked at several publicly traded companies in a VERY SENIOR capacity and I know the rating agencies very well. Each year they send your their fee schedule and you have no choice but to accept the fees. There is no alternative. When looking at stocks to buy, I focus on the ratio of operating cash flow to capital expenditures. The higher this ratio the better. A ratio of 5.0x is good. Moody’s ratio is about 29x. Other companies that have a high ratio are United Health Care,Caremark, Express SCripts. Thus, they need modest capital expenditures to sustain their cash flow. Focus on the cash flow statement. It will give you great insights if you are a long-term investor.